What: Takeover target Goodman Fielder Ltd (ASX: GFF) has received a revised offer from suitors Wilmar International Ltd and First Pacific Company Ltd approximately two weeks after shareholders were first made aware that an offer for the baker and food manufacturer was on the table.
So what: The revised offer is at a proposed price of 70 cents per share and also allows for the payment of a one cent final dividend. This revised offer is significantly superior to the initial offer of 65 cents per share which was announced on April 28.
Now what: While the board rejected the initial offer, stating that it, "materially undervalued Goodman Fielder and was opportunistic"; late last Friday the new revised offer was unanimously recommended by the board, in the absence of a superior proposal.
With the stock opening Monday morning at 69 cents there is little room for investors to profit now unless they believe a competing bid for the company will emerge. Given the share price has been underperforming for years – it is down 36% over the past three years, compared with a 15% gain from the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO), arguably other interested parties have had plenty of opportunity to step-up and make a play for Goodman Fielder already.